01 Jul BUSSINESS
Topic: Business Analysis week 2
Writing Hypotheses
Read the situation. Then write the hypotheses in correct mathematical notation. Do not conduct any statistical tests. Just
write the hypotheses. Insert your answers between the problems.
Here are some things to keep in mind:
1) On the Hypothesis Testing Worksheet, all you need to do is write the null and alternative hypotheses for each situation.
2) The null hypothesis will always be “=”.
3) You can use either “?” or “not =” for “does not equal”. Greater than and less than is “>” or “<”, respectively.
4) The alternative hypothesis wil be “not =” (2 tailed test) of “>” or “<” (one tailed test).
5) When determining what the null and alternative hypotheses are, realize that the alternative is the new information, what
you are trying to prove. The null is what has been believed to be true up until now.
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1) A bowler who has averaged 196 pins in the past year is asked to experiment with a ball made of a new kind of material. He
rolls several games with the new ball. Has the new ball improved his game?
2) An advertisement claims that chewing NoCav gum reduces cavities. To test the claim, you conduct a study in which
participants who chew the gum are compared to the national average of 3 cavities found per year.
3) In a speech to the Chamber of Commerce, a city councilman claims that in his city less than 15% of the adult male
population are unemployed. An opponent in the upcoming election wants to test the councilmans claim.
4) The councilman is starting to get worried about the upcoming election. He has enjoyed 63% support for several years, but
the political climate has been changing. He wants to know if his support has changed.
5) A production process is considered to be under control if the machine parts it makes have a mean length of 35.50 mm with a
standard deviation of 0.45 mm. Whether or not the process is under control is decided each morning by a quality control
engineer who bases his decision on a random sample of size 36. Should he ask for an adjustment of the machine on a day when
he obtains a mean of 35.62 mm?
6) Jim, the owner of Jims Grocery, knows that Plain Chips have always outsold Spicy chips. However, sales of Spicy chips
have been increasing. Jim wants to determine if the average weekly sales of Spicy chips have indeed surpassed that of Plain
chips.
7) Jim now wants to know if Plain and Spicy chips have the same percentage of defective product (i.e. underfilled bags, torn
bags, wrong flavor in the bags, etc.).
8) The Great Vehicle Co. just introduced New SUV, claiming it can pull more weight than Old SUV. After testing 150 vehicles
of each model, Old SUV had a mean pull weight of 5032 pounds with a standard deviation of 72 pounds. New SUV had a mean pull
weight of 5462 pounds with a standard deviation of 154 pounds. Is the claim valid at a .05 level of significance?
9) The Great Vehicle Co. has a competitor, Amazing Autos, that claims people who purchase its competing vehicle, the Sport
Off Road Vehicle (SORV), have higher customer satisfaction than New SUV. Out of 736 people who purchased the SORV last month,
534 said they were satisfied. Out of 521 people who purchased New SUV last month, 375 said they were satisfied. Is there a
higher percentage of people who are satisfied with the SORV than with New SUV?
10) The Great Vehicle Company wants to counter Amazing Autoss claim by making its own claim that New SUV has a lower
percentage of defective vehicles. The research team tested 536 vehicles of each model and found that SORV had 53 defective
units, while New SUV had only 51 defective units.
Statistics Problems
1) Ask 10 people (try to get 5 males and 5 females) the following questions
A) Their ages
B) How many vitamins they take daily
C) How many carbonated sodas they drink each day
D) How many alcoholic beverages they drink per month
E) Write your own question. Ask your participants if they agree with something or if they do something. For example, you may
want to ask them if they eat popcorn when they go to the movies or if they support a political issue. It must be a yes/no
question.
SAVE YOUR DATA You will use the data you gathered above for the problems below and more question in future weeks.
Practice Problems:
1) Use your data from above. This week assume that historically the average person takes 3 vitamins on a daily basis. Conduct
a hypothesis test analysis to determine if 3 is still the correct average number. Write your hypotheses in correct
statistical notation. Finally use the important numbers from your output to explain your results. Use alpha = 0.05. Post only
the relevant numbers, not all of the output; then explain your results.
2) Use your data from above. Analyze if more than 58% support an issue or partake in an activity. (Question E above). Write
the hypotheses. Show the relevant numbers. Then explain your results. Use alpha = 0.05.
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